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Utah House meets in special session to confront $173 million projected shortfall; GOP plan mixes cuts and one-time funds

50th Utah Legislature, House of Representatives · June 26, 2002
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Summary

Lawmakers convened June 19, 2002, in a fifth special session called by the governor chiefly to resolve an estimated $173 million fiscal-year 2003 gap. Leaders outlined options including a 4.75% across-the-board cut, and a Republican-majority plan combining roughly $101 million in cuts with one‑time funds and reassignments.

The Utah House of Representatives convened in a fifth special session June 19, 2002, after a proclamation from Governor Michael O. Leavitt and certification by Lieutenant Governor Olin S. Walker calling lawmakers to address a projected $173,000,000 shortfall in the fiscal‑year 2003 budget.

House leaders and members laid out competing approaches to close the gap. The Speaker described a straight 4.75% across‑the‑board reduction that would proportionally cut every state agency, and also presented a Republican‑majority proposal the Speaker said would rely on a mix of spending cuts and one‑time funding sources. That alternative was described as combining about $101,000,000 in targeted cuts with additional funds drawn from the capital fund and the tobacco settlement, and by changing the timing of certain collections.

Speakers cautioned that relying on one‑time revenues would increase next year’s obligations. The Speaker noted roughly $40,000,000 of one‑time money included in the current budget baseline that would likely need replacement in the following budget cycle, and warned that shifting tobacco settlement or capital funds into this year’s balance would raise future shortfalls. Lawmakers also flagged recent economic performance: projections used 2% job growth over three fiscal years, a rate the Speaker said has not been achieved in the last six quarters, and urged fiscal conservatism.

Members asked for bipartisan input and the opportunity for minority proposals to be examined in committee. The Speaker invited Democrats to present specific counterproposals for committee consideration and emphasized a desire for a “bipartisan and well‑crafted plan” while acknowledging constrained options and ongoing uncertainty in revenue projections.

The special session proclamation included other items for legislative action—reconsideration of House Bill 25 (adult protective services amendments), reconsideration of county canvassing timing as amended by Senate Bill 36 (provisional ballot), possible changes to court data collection for DUI cases, consideration of a 2002 Utah federal‑state trust lands consolidation agreement, and authorization for local subdivisions to call special elections on legal‑boundary changes—but the recorded floor discussion on June 19 focused primarily on the budget shortfall and organizational procedures. Future committee work and floor sessions were scheduled to pursue the other items.

The House planned to recess to sub‑appropriations committees and caucuses for further work on mitigation proposals before returning to the floor; members were told to reconvene on July 8 for continued consideration.